Milestone Event for Vulcan Mineral's Alberta Diamond Play.
Released today as follows--
Cyber Rock
News Release
February 5, 1998
Stock Symbol: VUL:ASE
Shares issued: 9,119,500
Vulcan Minerals Inc. enters into Financing Agreement
St. John's, Newfoundland - Vulcan Minerals Inc. (the company, ASE:VUL) is
pleased to announce that it has negotiated a financing agreement with
Yorkton Securities Inc. (Yorkton) whereby Yorkton will seek to raise by way
of Exchange Offering Prospectus (EOP) $1,050,000 with an option to raise up
to $1,207,500. It is anticipated that the EOP will be filed by March 31,
1998 and will offer units consisting of one share and one series A warrant.
Each series A warrant would be exercisable for 12 months from date of issue
at a price equal to the offering price of the units. The price of the units
will be in the context of the market at the time of filing. The Agent will
be entitled to a commission of 7.5% of gross proceeds and be entitled to
warrants equal to 15% of the units sold. The broker warrants would have the
same terms as the series A warrants. The financing is subject to normal due
diligence and regulatory approvals. Proceeds are to be used for diamond
exploration in Alberta and petroleum exploration onshore western Newfoundland.
Vulcan owns 100% interest in approximately 2.1 million acres under
application for metallic and industrial mineral permits in northern Alberta.
These properties cover favourable structural sites for diamondiferous
kimberlites. Part of the proceeds from the financing will go to
high-resolution airborne magnetic surveying of the properties. As well, this
year Vulcan plans to drill an onshore well for petroleum in western
Newfoundland, an emerging exploration frontier area. The company is
presently permitting a seismic survey in prelude to the drilling program.
Vulcan already owns a 25% interest in the Flat Bay block with rights to earn
up to 62.5% interest by drilling a well by July 1998.
For information please contact Mr. Patrick Laracy, President of Vulcan
Minerals Inc. at (709) 754-3186, fax (709) 754-3946 or E:mail:
laracy@thezone.net Website: info-mine.com
The Alberta Stock Exchange neither approves nor disapproves of the
information contained herein. |
